Only the employed seem to pay tax?

[Taxevasion]

This is annoying me. Met a person recently that owns a lot of property (multi-million) that is let out in various ways but doesn’t pay any tax. Whatever they do is legal but the fact is they don’t pay tax so don’t contribute to the costs of running the country.

So am I being unreasonable in thinking this is very unfair? It seems that only those of us who are employed and pay tax paye fully contribute.

@Taxevasion here's a really crazy one for you, my dh is employed and...he doesn't pay tax...and yes he is in the U.K.!

The middle classes own properly through limited companies, the wealthy through trusts in offshore jurisdictions. Even property transfers are structure with real estate tax blockers in place. Let’s my get exited about someone owning a second home there bed semi and renting it out, let’s get angry at the hotels bought and sold through offshore structures.

[quote Flapjacker48]@fuddleducks You set yourself up as a PLC which I'm sure you know.[/quote]
Whaaaat? So you think they should set up a public company, traded on the stock exchange and pay dividends to shareholders? Why? Or is it that you are commenting when you have utterly no idea?

@Tabbydancer

I’m a landlord and pay a lot of tax!

Small landlords absolutely do pay their fair share.

The schemes spoken about involve the rich. Remember the Pandora papers. It's people with multi million pound property empires - multiple properties, like the Blairs.

[quote flamebuoy]@Taxevasion here's a really crazy one for you, my dh is employed and...he doesn't pay tax...and yes he is in the U.K.! [/quote]
Are we doing taxation riddles now?

@NigellaAwesome again you don't properly understand....if they're leaving it in the business and not paying themselves a salary they'll be paying far more tax as they'll then be taxed on the cash via corporation tax which is more than income, another scenario is they'll be paying themselves dividends also, yes this means that the child benefit falls through a loophole, but what with VAT, corporation tax and personal tax they've probably contributed more to that benefit than ypu have.

Also it's really limited what you can put through your business ypu can't go putting you're weekly shop through it 🤣

@RainbowLightning A limited company, and no I'm not an expert on setting up a business to pay tiny amounts of tax while effectively getting a huge salary - you probably are.

@MurielSpriggs taxation riddles! Yes, my favourite kind of riddle lol...

This seems unlikely, or they have very complicated arrangements.

All the self-employed people I know pay tax.

Most people will pay tax in one way or another. We are charged VAT on items, there’s tax on our fuel, our pensions, inheritance tax, stamp duty.

[quote flamebuoy]@MurielSpriggs taxation riddles! Yes, my favourite kind of riddle lol...[/quote]
Your one does have an answer!

@MurielSpriggs yes lol and I'm glad you get it (at least I think you do 🤣) Let's see if @Taxevasion gets it!

[quote Flapjacker48]@RainbowLightning A limited company, and no I'm not an expert on setting up a business to pay tiny amounts of tax while effectively getting a huge salary - you probably are.[/quote]
A limited company is different to a plc which you don’t seem to understand. You also don’t understand that being self employed is different to being a director/shareholder of a limited company. I do. Why you are doling out insults to me whilst showing off your ignorance I don’t know

I’m self employed and I pay tax.

@RainbowLightning Well I hope any financial support you got from the government for covid reflected the way you set up your business

[quote Flapjacker48]@RainbowLightning A limited company, and no I'm not an expert on setting up a business to pay tiny amounts of tax while effectively getting a huge salary - you probably are.[/quote]
How are they getting a huge salary and not paying tax on it?

The company will pay corporation tax on its profits. The director will pay, just like any employee, tax on a salary
(Although the salary could be below the personal allowance) and then will pay tax on dividends. They can only take dividends if company has the reserves to pay them (ie makes a profit)

Is it more tax efficient? Yes. But not by huge margins by the time you take into account corporation tax

We pay tax on the income from one small rental property.

Though having said that, I’m sure a certain percentage of landlords don’t pay any, since it’s up to the LL to declare the income on a self assessment form, and if your local council has no compulsory registration of LLs, and if the property is not mortgaged, there is absolutely nobody except for one of the official deposit schemes, that you are obliged to inform.
I have heard at 2nd hand of LLs virtually boasting of not declaring their rental income. In one case they were two senior NHS doctors who told a 3rd that she was mad to be declaring rental income - ‘We never have!’

@Knickynackynoo - the people we knew put a lot of their personal travel through as AGMs & fact finding trips. Others in that group were installing new kitchens in their homes and putting it through as a business expense against rental property.

They run the risk of it being queried by HMRC, but as far as I know, they have never been investigated.

[quote NigellaAwesome]@Knickynackynoo - the people we knew put a lot of their personal travel through as AGMs & fact finding trips. Others in that group were installing new kitchens in their homes and putting it through as a business expense against rental property.

They run the risk of it being queried by HMRC, but as far as I know, they have never been investigated.[/quote]
It is entirely possible that they include it in their accounts information and that the accountants pull it out and put it through the directors loan account and raise additional dividends to clear it, increasing the tax paid by the director.

People do struggle with "company funds" not being their own funds and get in a right mess and cause themselves tax issues by putting personal expenses through the company.

I'm SE and pay a ton of tax thank you

@GETTINGLIKEMYMOTHER

We pay tax on the income from one small rental property.

Though having said that, I’m sure a certain percentage of landlords don’t pay any, since it’s up to the LL to declare the income on a self assessment form, and if your local council has no compulsory registration of LLs, and if the property is not mortgaged, there is absolutely nobody except for one of the official deposit schemes, that you are obliged to inform.
I have heard at 2nd hand of LLs virtually boasting of not declaring their rental income. In one case they were two senior NHS doctors who told a 3rd that she was mad to be declaring rental income - ‘We never have!’

Perhaps the government needs to have a look at this.

Quite worrying

@GETTINGLIKEMYMOTHER

We pay tax on the income from one small rental property.

Though having said that, I’m sure a certain percentage of landlords don’t pay any, since it’s up to the LL to declare the income on a self assessment form, and if your local council has no compulsory registration of LLs, and if the property is not mortgaged, there is absolutely nobody except for one of the official deposit schemes, that you are obliged to inform.
I have heard at 2nd hand of LLs virtually boasting of not declaring their rental income. In one case they were two senior NHS doctors who told a 3rd that she was mad to be declaring rental income - ‘We never have!’

They must be getting their rent in cash, I guess.

Phoenix the point I was making is that as well as personally tax he pays corporation tax. Which when it’s just you earning the money is just another tax on your earnings in a different way. I have no clue what way around it all is. All I know is he earns a bunch of fees and he is taxed in a multitude of ways before it ends up in our personal account.

[quote flamebuoy]@Taxevasion here's a really crazy one for you, my dh is employed and...he doesn't pay tax...and yes he is in the U.K.! [/quote]
Works for the UN?

Bloody globalism.

[quote Flapjacker48]@RainbowLightning Well I hope any financial support you got from the government for covid reflected the way you set up your business [/quote]
Wtf? When did I say I had a business? As it happens I am an employed qualified accountant which is why I know what I’m talking about. I’m guessing you aren’t which is why you don’t.